Preliminary figures for the full calendar year 2014 released by the Association of Asia Pacific Airlines (AAPA) showed air cargo markets experienced an encouraging revival in demand after three consecutive years of declines.

An upsurge in exports from manufacturing hubs in the region led to a rebound in international air cargo markets in 2014, with demand as expressed in freight tonne kilometre (FTK) terms growing by a solid 5.4 per cent compared to the previous year. Available freight capacity grew at a relatively modest pace of 4.1 per cent, resulting in a 0.8 percentage point increase in the average international freight load factor to 64.9 per cent.

Commenting on the results, Andrew Herdman, AAPA director general said, “Air cargo markets experienced a welcome upswing in 2014, with the second half of the year registering 6 per cent growth compared to the same period in 2013, following several years of stagnant demand.”

Herdman added, “The dramatic fall in oil prices since the end of the year has been welcomed by many airlines, although the resultant benefit in terms of improved profitability will vary depending on individual airline hedging policies and their degree of exposure to external debt, given the weaker Asian currencies.”

Looking ahead, Herdman concluded, “Overall, the outlook for the coming year remains broadly positive, with sustained growth in the global economy continuing to drive air travel demand, whilst lower oil prices will also help to keep air travel affordable. However, airlines will need to closely monitor market movements, and align future capacity increases with the actual increase in demand, whilst seeking further operating efficiencies to restore margins to more sustainable levels.”